| Author
|
Post |
 
|
|
00SL2
F L I N T O I D
|
Flint considers borrowing to cover $20M debt
Published: Wednesday, September 08, 2010, 6:28 PM Updated: Wednesday, September 08, 2010, 7:15 PM
Kristin Longley | Flint Journal
FLINT, Michigan — The city of Flint is grappling with an estimated $20 million in debt — and is considering borrowing money to help balance the budget.
The latest estimate of the city’s accumulated deficit is based on unaudited figures from the city Finance Department, according to a proposal sent to the Flint City Council on Wednesday.
Flint Mayor Dayne Walling’s administration is pursuing a $20 million loan — by issuing fiscal stabilization bonds — to cover the deficit, a move that would require the state’s permission.
The last time Flint’s deficit topped $20 million was in 2002, when the state appointed an emergency financial manager to reduce the city’s $28-million debt.
The mayor’s office planned to ask the Flint City Council on Wednesday to authorize the proposal, but Walling instead asked that it be postponed at least two weeks, said Dawn Jones, the mayor’s communications director.
“This is an avenue that we are pursuing,” Jones said. “There are still some conversations and information that needs to be gathered before we move forward.”
Discussion about the city borrowing $13 million started in April, and the figure now has grown as the city’s financial forecast has worsened.
Walling’s administration cut spending by 14 percent, from $66.3 million last year to $57.1 million for the fiscal year that started July 1. Still, the city’s tax base is declining rapidly and officials have said the bonds will allow the city to “stop the bleeding” and avoid devastating cuts to services.
Emergency Financial Manager Ed Kurtz also issued fiscal stabilization bonds in 2004 to get the city out of debt before ending the state financial takeover.
All Michigan communities are required to have a balanced budget every year. Issuing bonds would help the city pay off its deficit over a longer period — possibly up to 20 years.
Walling has said the loan payments would be made out of the public improvement fund, not the general fund operating budget.
Some city council members said they have questions that need to be answered before they’ll consider such a huge undertaking, and council members voted to drop the issue at their meeting Wednesday. The bonds would need to be backed by the full faith and credit of the city.
Councilman Scott Kincaid questioned the $20 million figure. He said the deficit could climb even higher when this fiscal year is taken into account.
Councilman Joshua Freeman, chairman of the finance committee, said he wants to know how the city plans to cut spending this year before he approves a bond issue. He also wants to talk to state officials about the city’s current finances.
“Until that happens, I don’t see the council moving forward with this,” he said before the meeting Wednesday. “I’m not going to rush into something saying our back’s against a wall. I’m not interested in doing that.”
Council President Delrico Loyd said he doesn’t think the city is prepared to apply for the bond issue, and he’s reluctant to approve such a measure at this time.
“If you don’t know how you’re going to pay it off, then you’re going at it backwards,” he said. “Then all you’re doing is kicking the can down the road.”
© 2010 MLive.com. All rights reserved.
--
One of many comments for this article:
gogroup
September 08, 2010 at 9:49 PM
Where is the City spending money on things its taxpayers don't want ?
Maybe this financial mess means the City has to say NO to the University Park Estates request for ANOTHER 12 YEAR TAX EXEMPTION.
--
Source: http://www.mlive.com/news/flint/index.ssf/2010/09/flint_considers_borrowing_to_c.html
* * *
Say NO not only University Park Estates, but also NO to creating Renaissance Zone for Diplomat_Pharmacy in the Great Lakes Technology Center. Keep reducing the tax base, there'll be less income.
* * *
Flint City Council moves forward on tax break for Diplomat_Pharmacy
Published: Wednesday, September 08, 2010, 9:16 PM Updated: Wednesday, September 08, 2010, 9:25 PM
Kristin Longley | Flint Journal
FLINT, Michigan -- The Flint City Council moved forward tonight on creating a lucrative tax break for Diplomat Specialty_Pharmacy, which is relocating and expanding in Flint.
The council on Wednesday gave its initial approval on creating a Renaissance Zone at Diplomat's proposed new location in the Great Lakes Technology Center.
The designation would waive various state, local and county taxes on the property for 15 years.
Photo: Diplomat_Pharmacy-mapPT.jpg Dan Jacalone | The Flint Journal. Diplomat Specialty_Pharmacy plans to relocate its headquarters from Flint Township to part of the Great Lakes Technology Centre in Flint.
The council will likely make its final decision on the proposal at its meeting Monday night.
The city previously has given similar tax breaks to businesses investing in the area.
Diplomat plans to hire 1,039 new workers in the next five years and up to 4,000 by 2028, according to information provided to the council.
The city of Flint stands to lose an estimated $425,000 in tax revenue over the life of the Renaissance Zone.
Diplomat projects it will make an initial capital investment of $13 million and $28.6 million over the next 20 years.
© 2010 MLive.com. All rights reserved.
Source: http://www.mlive.com/news/flint/index.ssf/2010/09/flint_city_council_moves_forwa.html |
|
|
Wed Sep 08, 2010 11:21 pm |
|
|
twotap
F L I N T O I D
|
| Meanwhile the hasnt got a clue potus is planning on furthur killing the economy by taxing those who
he
claims make more money then they need. In this case the magic number being $250K . |
_________________
"If you like your current healthcare you can keep it, Period"!!
Barack Hussein Obama--- multiple times. |
|
|
Thu Sep 09, 2010 8:19 am |
|
|
Dave Starr
F L I N T O I D
|
| J. Wellington Walling: "I'll pay you on Tuesday for a hamburger today". |
_________________
I used to care, but I take a pill for that now.
Pushing buttons sure can be fun.
When a lion wants to go somewhere, he doesn’t worry about how many hyenas are in the way.
Paddle faster, I hear banjos. |
|
|
Thu Sep 09, 2010 8:28 am |
|
|
untanglingwebs
El Supremo
|
| The Great Lakes Tech Center currently pays no taxes because it is owned by the Land Bank! |
|
|
|
Thu Sep 09, 2010 4:34 pm |
|
|
Ryan Eashoo
F L I N T O I D
|
|
Mayor Walling has lost touch with reality! God Help Us!
|
_________________
Flint Michigan Resident, Tax Payer, Flint Nutt - Local REALTOR - Activist. www.FlintTown.com |
|
|
Thu Sep 09, 2010 9:46 pm |
|
|
untanglingwebs
El Supremo
|
The Police dept. currently has spent about $1 million over the projected spending for the department because of overtime.
Walling could have made the tough choice and made altenative methods of nonviolent crime reporting being done without an officer. Sadly this is happening all across the country because of the loss of publy safety officers. People call or go on line to report their crime and receive a police complaint number.
Officers are routinely working overtime to handle robberies, etc. so long after the crime that it hardly makes sense. |
|
|
|
Sat Sep 11, 2010 5:39 pm |
|
|
untanglingwebs
El Supremo
|
Since Brown and Walling took over there are 11 new people hired in DCED and many of the trained professionals are being forced out. The city posted a RFP for a contractual employee and ended up hiring Ricky Jordan as an employee protected by local 1600. They did not even write his job description until August 26th, months after he was hired.
One employee retired because of the stress and the city is manipulating to fire the remaining employees. Meantime the city is dealing with Civil Service hearings for four of the employees. |
|
|
|
Sat Sep 11, 2010 5:44 pm |
|
|
untanglingwebs
El Supremo
|
| City is now considering borrowing money from the water fund to eliminate the deficit/ |
|
|
|
Tue Sep 14, 2010 6:31 pm |
|
|
Ryan Eashoo
F L I N T O I D
|
Borrow from the water fund when our water and sewer system is crumbling?
|
_________________
Flint Michigan Resident, Tax Payer, Flint Nutt - Local REALTOR - Activist. www.FlintTown.com |
|
|
Tue Sep 14, 2010 8:05 pm |
|
|
untanglingwebs
El Supremo
|
| Not enough money allegedly in the water fund, so more must come from somewhere else. Eason says enovations in the north end will include new water and sewer lines. |
|
|
|
Fri Sep 17, 2010 7:19 pm |
|
|
tmonahan01
F L I N T O I D
|
"Yes, the era of bad government i s over, the days have passed for passing on
new debts to future taxpayers." Dayne Walling State of the City Address 2010
And what does one call borrowing 20 million to pay of the current debt? This guy is nuts! Now who can we support for the next mayors race coming up next summer? |
|
|
|
Sun Sep 19, 2010 4:43 pm |
|
|
|
FAQ
Search
Memberlist
Register
Profile
FlintTalk.com Forum Index
> Political Talk
